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Channel Conflicts
(Updated
10/26/2011 10:52 AM
)
MGT 307
Dell Computer has long been a leader in distributing products via a 'direct'
channel between Dell and customers. Recently, the company has been moving into
conventional two step distribution channels. After reading this
Business Week article about Dell's initiative, answer these questions:
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What pricing-related conflicts are
likely as Dell
tries to distribute products through both the direct and two step channels?
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Can Dell easily transfer its build-to-order approach
for making PCs for the direct channel to the two step channel?
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If you were advising Michael Dell on downstream
distribution strategy, what would you advise here?
Submit a one page memo with your answers.
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